A loan in which the borrower promises to repay the borrowed amount plus a predetermined rate of interest is called a(n) ________.
A. equity
B. exchange rate
C. stock
D. debt
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Which of the following is a debt instrument that specifies the timing of principal and interest payments?
A. stock
B. bond
C. share
D. equity
________ refers to shares of ownership in a company's assets that give shareholders a claim on the company's future cash flows.
A. Stock
B. A bond
C. Debt
D. A draft
The ease with which bondholders and shareholders may convert their investments into cash is called ________.
A. barter
B. clearing
C. countertrade
D. liquidity
An expanded money supply ________.
A. reduces the cost of borrowing
B. increases interest rates
C. makes it difficult for financial institutions to lend money
D. diminishes entrepreneurial initiatives in a country